Top Blacklisted Forex Brokers You Should Avoid

 Top Blacklisted Forex Brokers You Should Avoid

With a daily volume of more than $6 trillion, it is only natural that forex attracts scammers to the industry. These scammers often position themselves as forex brokers. Unlike legitimate brokers, their main objective is to steal their clients' money.To get more news about blacklist of forex scam brokers, you can visit wikifx.com official website.

Thanks to the ease of information access and strict regulation, forex scams are not as prevalent as a decade ago. However, their persistent existence indicates that traders still fall for their frauds. Below we will provide you with useful information about forex scams and how to avoid blacklisted forex brokers that have been officially labeled as scams.

Types of Forex Scams
Forex scams can be organized scammers that disguised themselves as brokers or brokers that commit scams themselves. They are often very well-versed in digital technology as this is their main vehicle to deceive traders. In general, scam brokers can be divided into these three types.
1. Fly-by-night Websites
This is the type of scam brokers that will grab your money very quickly and fly away at night to evade their responsibility. They come fast, and they go even faster if they have already got what they want. They operate by setting up a website that often looks very plain and simple. On it, they will write bogus claims of easy and big profits, or anything that could attract you into investing with them. But once you make a deposit, they will disappear either by declaring bankruptcy or announcing nothing at all.

Regardless of what narrative they go with, you lose your money. Visiting their website will be pointless because at this point it has already closed down. In fact, this type of scam is so ubiquitous that many websites are launched and closed down within less than a year.
2. Pyramid Schemes
Forex is not a pyramid scheme, but some so-called brokers do operate as MLM companies. Just like any other pyramid scheme, they promise you a dream-like life where you can quit your job and travel around the world while money keeps pouring into your bank account. This is how forex pyramid schemes usually do their business.

First, they will ask you to pay an entrance fee, and then you will be asked to buy their products such as training videos, trading signals, and other products to improve your trading skills. You do not make money by trading forex. Instead, what you actually do is to recruit more investors into the scheme and ask them to buy the company's products so you can earn a commission fee.
3. Bucket Shops
Bucket shops are brokers that have unethical trading practices. Unlike fly-by-night brokers and pyramid schemes, bucket shops do have functioning trading activities, albeit for malicious intents. In general, the term bucket shop is associated with brokers that engage in bucketing transactions.

Bucketing itself refers to practices by which brokers illegally generate profits from their clients' trades, such as frequent price misquotes or re-quotes, delays in order executions, etc. For example, a trader executes a buy position of EUR/USD at 0.8294. The broker confirms the transaction has been made while the truth is the order will be executed later when the price is at 0.8298. The difference of 4 pips is kept by the broker as their own profit; a fact that will never be revealed to the trader.
How to Identify Forex Scams
In today's era, information is accessible to anyone within minutes. Identifying forex scams is not as difficult as it used to be. But traders, particularly novices, are still prone to scams. Scammers are also evolving to trick their unsuspecting victims. Regardless of what methods they use, you can identify forex scams with these suspicious attributes.

Promises of Big Profits
Brokers with this attribute are undoubtedly scammers that seek to trade their empty promises with your money. It is pretty much accepted as a fact that forex trading does not guarantee profits, let alone big ones. Also, it's worth noting that only a small portion of beginners are able to make money consistently in forex trading.